Some business owners find it a little off to negotiate their leasing rates and terms to landlords. But this is a common practice in real estate. Renter, as much as possible, would like to ensure that they are getting more from their lease payments.
If you don’t have an idea on how you can negotiate your terms for renting an office space in Business Bay, Dubai, here are some tips that might be able to help you:
- Do your homework
If you aim to win the negotiations battle, the best thing you can do is to arm yourself with knowledge. Before setting an appointment with your landlord, research about the fair market price of leasing and purchasing. If the asking figure is too high for you, your knowledge about the current market rates can help lower the cost of the leasing pay. If you are renewing your lease, this information can help as well.
- Know your options
There are a number of leasing options that you can choose, depending on your requirements. Be sure to familiarize yourself with these options to know which of these choices would best suit your needs. There are different type of lease for commercial spaces – from gross rent lease to a triple net lease. You can also opt for a percentage lease wherein you will pay the base rent plus the minimum percentage of your gross sales.
- Go for alternatives
If reducing the lease payment is not possible, try to go for additional features that can help improve your office space. You can negotiate for additional stipulations like additional hours for use of shared amenities. You can also list down possible alternative that you can include in your negotiation. Try to be realistic when negotiating for additional features so you can have a higher chance of approval.
- Check the renewal stipulations
For renewals, be sure to check the terms and conditions. Be sure to go over each item to check which stipulations can be negotiable. Be practical and think of ways to either lower the lease pay by removing some of the terms or requesting for additional rent features that would equate to your rent rate.
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- Review the new agreement
It would be best if you can consult with a lawyer first before inking the agreement. You need to know the legal increments added to the agreement and whether these additions would be favourable to you.